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Trump Administration Exempts Electronics from Tariffs

In a strategic decision, the Trump administration announced late Friday that it would exclude several electronic devices, such as smartphones and laptops, from reciprocal tariffs. This decision is poised to have a positive impact on the pricing of popular consumer electronics that are not typically produced within the United States.

The exemption is expected to benefit major technology corporations like Apple and Samsung, in addition to semiconductor manufacturers such as Nvidia. U.S. Customs and Border Protection identified approximately 20 products that will qualify for this exemption. These products include hard drives, memory chips, flat-panel monitors, and solid-state storage devices, along with machinery utilized in semiconductor production.

As a result of this exemption, these electronic components will avoid the steep 145 percent tariffs currently imposed on goods from China, as well as the baseline 10 percent tariffs applied to products from other regions.

Previously, President Trump expressed willingness to consider granting exemptions from tariffs for certain companies, indicating a more nuanced approach to trade policy in the technology sector.

Wedbush analyst Dan Ives noted that this decision alleviates significant pressure from the tech industry, calling it a “huge black cloud overhang for now over the tech sector and the pressure facing U.S. Big Tech.” However, as of early Saturday, neither Apple nor Samsung had responded to requests for comment, and Nvidia also chose not to provide any feedback on the announcement.

Source
www.cbc.ca